Person typing on laptop with blue glow from Meta AI chat and blurred cityscape outside

Meta’s New AI Privacy Policy Sparks FTC Scrutiny Over Targeted Ads

At a Glance

  • Meta’s new privacy policy will use AI chat data for targeted ads.
  • 36 consumer-rights groups urge FTC to investigate the policy.
  • Meta says over 1 billion people use Meta AI each month.
  • Why it matters: Users may see ads based on private AI conversations without an opt-out.
Chat windows analyzing user data with concerned avatar and AI chatbots delivering personalized ads

Meta announced a change to its privacy policy that will allow data from interactions with its AI services to be used for targeted advertising across Facebook, Instagram, WhatsApp, and other Meta platforms. The update expands on a prior statement that the company collects conversation metadata and now includes prompts and other user-shared content. It comes after a press release in October that highlighted the policy’s intent to improve content recommendations.

Policy Update Explained

Meta’s updated policy clarifies that “Prompts that can include questions, messages, media and other information you or others share with or send to AI at Meta” will be used to personalize ads. The umbrella term “AI at Meta” covers the Meta AI chatbot, Vibes, and AI features on Ray-B smart glasses. The company says the new rule applies to all interactions with its AI tools.

User Impact and Company Promises

Meta stated:

> “Whether it’s a voice chat or a text exchange with our AI features, this update will help us improve the recommendations we provide for people across our platforms so they’re more likely to see content they’re actually interested in – and less of the content they’re not.”

A user chatting about hiking could later see ads for hiking boots. Meta said it would notify users through in-product notifications and emails weeks before the policy took effect.

Advocacy Response and Regulatory Push

A coalition of 36 privacy, consumer-protection, and civil-rights groups sent a letter to the FTC at the end of October urging an investigation.

The letter claims:

> “The Commission should recognize that Meta’s decision to monetize AI-driven chatbots without even a basic opt-out mechanism reflects the company’s broader strategy: an aggressive expansion of AI for marketing and advertising.”

The groups argue the policy normalizes surveillance-driven, behavior-changing marketing.

They call on the FTC to use its authority under the 2019 consent decree and Section 5 of the FTC Act to probe the program and suspend the advertising practice.

The Trump administration has taken a pro-AI stance, and President Donald Trump signed an executive order in December to limit state AI regulations.

Neither Meta nor the FTC has responded to a request for comment.

Key Takeaways

  • Meta’s new policy will use AI chat data to target ads, affecting over 1 billion monthly users.
  • 36 advocacy groups have asked the FTC to investigate the lack of an opt-out option.
  • The policy follows a Trump-era pro-AI executive order, but regulatory action remains uncertain.

The debate highlights how AI data can shape advertising, raising questions about privacy and consumer choice in the digital age.

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